The Prime Minister’s announcement followed a “situation room” meeting with England’s metro mayors.
Published 22nd Oct 2026, 17:41 BST
Andy Burnham has confirmed that major changes to Treasury rules around infrastructure spending announced by Rachel Reeves, that were designed to boost the North, will be included in next week’s Budget.
Northern leaders have long argued these calculations have to be reformed, saying they currently favour investment in wealthier areas, such as London, as they focus on short-term gains.
Yesterday, following a “situation room” call with mayors, Mr Burnham confirmed he would deliver the reforms in the Budget next week.
“Communities have been let down for years by outdated rules that haven’t properly looked at what’s needed to unlock their potential,” he said.
“That’s why we’re changing the system so that local priorities are put at the heart of decision making.
“This is what No10 North is all about. Rebalancing power away from Westminster, backing local leaders and making sure government is set up to deliver what communities actually need to feel the difference.”
The Treasury said the updated framework “will help generate new place-based business cases which will put local priorities at the heart of investment decisions”.
It said the Green Book will consider funding which will support low employment and skill shortages, and how projects can work together.
Mr Burnham said No10 North will help support local areas all across the country to make the most of the changes, including providing assistance to places not currently represented by mayors.
Meanwhile the Chancellor confirmed his Budget would set out a “roadmap for future fiscal devolution”, another set of reforms first announced by Ms Reeves.
John Healey said: “This government wants to back places with the ambition and ideas to grow and make sure good opportunities for investment aren’t overlooked simply because the system doesn’t see the bigger picture.
“This change gives regional leaders a stronger voice in where investment can make the biggest difference in their communities.
“And at next week’s Budget I will set out plans to transfer more power and resources out of Westminster and into postcodes across the country.”
Chair of the UK Mayors Network, Claire Ward, added: “Getting changes like this right look small on the surface, but they mean that we can bring the benefits of growth into our regions, avoid further widening inequalities, and unlock the interesting, complex investments that will do so much for the people we serve.”
Before she lost her job in Mr Burnham’s reshuffle, Ms Reeves said she hoped her changes would “outlast” her time as Chancellor.
She explained: “That means that an investment proposition from Barnsley or Rotherham or Newcastle is taken on its merits, rather than the old approach which said areas that already have high wages or productivity stand to benefit the most from investment.